LITHIA MOTORS INC (LAD) Stock Fundamental Analysis
USA - NYSE:LAD - US5367971034 - Common Stock
293.98 USD
-5.39 (-1.8%)
293.98 USD
0 (0%)
Taking everything into account, LAD scores 5 out of 10 in our fundamental rating. LAD was compared to 122 industry peers in the Specialty Retail industry. While LAD is still in line with the averages on profitability rating, there are concerns on its financial health. LAD has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year LAD was profitable.
In the past year LAD had a positive cash flow from operations.
LAD had positive earnings in each of the past 5 years.
In multiple years LAD reported negative operating cash flow during the last 5 years.
1.2 Ratios
LAD has a better Return On Assets (3.67%) than 63.93% of its industry peers.
With a decent Return On Equity value of 13.28%, LAD is doing good in the industry, outperforming 72.13% of the companies in the same industry.
LAD has a Return On Invested Capital (5.53%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LAD is below the industry average of 11.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 13.28% | ||
| ROIC | 5.53% |
ROA(3y)5.63%
ROA(5y)6.47%
ROE(3y)17.4%
ROE(5y)18.55%
ROIC(3y)7.58%
ROIC(5y)8.54%
1.3 Margins
With a decent Profit Margin value of 2.39%, LAD is doing good in the industry, outperforming 63.93% of the companies in the same industry.
LAD's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 4.47%, LAD is doing good in the industry, outperforming 64.75% of the companies in the same industry.
In the last couple of years the Operating Margin of LAD has grown nicely.
LAD's Gross Margin of 15.40% is on the low side compared to the rest of the industry. LAD is outperformed by 86.07% of its industry peers.
LAD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.47% | ||
| PM (TTM) | 2.39% | ||
| GM | 15.4% |
OM growth 3Y-15.89%
OM growth 5Y2.61%
PM growth 3Y-21.85%
PM growth 5Y0.64%
GM growth 3Y-6.17%
GM growth 5Y-0.01%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LAD is destroying value.
The number of shares outstanding for LAD has been reduced compared to 1 year ago.
LAD has more shares outstanding than it did 5 years ago.
LAD has a worse debt/assets ratio than last year.
2.2 Solvency
LAD has an Altman-Z score of 2.45. This is not the best score and indicates that LAD is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.45, LAD is in line with its industry, outperforming 54.92% of the companies in the same industry.
A Debt/Equity ratio of 2.07 is on the high side and indicates that LAD has dependencies on debt financing.
LAD's Debt to Equity ratio of 2.07 is on the low side compared to the rest of the industry. LAD is outperformed by 70.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.45 |
ROIC/WACC0.63
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.21 indicates that LAD should not have too much problems paying its short term obligations.
LAD has a Current ratio of 1.21. This is comparable to the rest of the industry: LAD outperforms 40.98% of its industry peers.
A Quick Ratio of 0.30 indicates that LAD may have some problems paying its short term obligations.
LAD's Quick ratio of 0.30 is on the low side compared to the rest of the industry. LAD is outperformed by 74.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.64% over the past year.
The Earnings Per Share has been growing by 20.64% on average over the past years. This is a very strong growth
Looking at the last year, LAD shows a quite strong growth in Revenue. The Revenue has grown by 8.42% in the last year.
Measured over the past years, LAD shows a very strong growth in Revenue. The Revenue has been growing by 23.35% on average per year.
EPS 1Y (TTM)15.64%
EPS 3Y-8.87%
EPS 5Y20.64%
EPS Q2Q%15.71%
Revenue 1Y (TTM)8.42%
Revenue growth 3Y16.59%
Revenue growth 5Y23.35%
Sales Q2Q%4.93%
3.2 Future
Based on estimates for the next years, LAD will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.21% on average per year.
The Revenue is expected to grow by 5.36% on average over the next years.
EPS Next Y18.97%
EPS Next 2Y13.22%
EPS Next 3Y12.78%
EPS Next 5Y15.21%
Revenue Next Year4.72%
Revenue Next 2Y4.51%
Revenue Next 3Y5.07%
Revenue Next 5Y5.36%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.35, the valuation of LAD can be described as very reasonable.
LAD's Price/Earnings ratio is rather cheap when compared to the industry. LAD is cheaper than 87.70% of the companies in the same industry.
LAD is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.65 indicates a rather cheap valuation of LAD.
91.80% of the companies in the same industry are more expensive than LAD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LAD to the average of the S&P500 Index (34.59), we can say LAD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.35 | ||
| Fwd PE | 7.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LAD indicates a somewhat cheap valuation: LAD is cheaper than 63.93% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.32 |
4.3 Compensation for Growth
LAD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as LAD's earnings are expected to grow with 12.78% in the coming years.
PEG (NY)0.44
PEG (5Y)0.4
EPS Next 2Y13.22%
EPS Next 3Y12.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, LAD is not a good candidate for dividend investing.
LAD's Dividend Yield is a higher than the industry average which is at 5.49.
With a Dividend Yield of 0.73, LAD pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
The dividend of LAD is nicely growing with an annual growth rate of 11.85%!
LAD has paid a dividend for at least 10 years, which is a reliable track record.
LAD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.85%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
6.25% of the earnings are spent on dividend by LAD. This is a low number and sustainable payout ratio.
LAD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP6.25%
EPS Next 2Y13.22%
EPS Next 3Y12.78%
293.98
-5.39 (-1.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners102.22%
Inst Owner Change-5.8%
Ins Owners0.88%
Ins Owner Change-0.09%
Market Cap7.54B
Revenue(TTM)37.61B
Net Income(TTM)898.90M
Analysts83.16
Price Target396.3 (34.81%)
Short Float %7.34%
Short Ratio6.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend2.1
Dividend Growth(5Y)11.85%
DP6.25%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.07%
Min EPS beat(2)9.71%
Max EPS beat(2)10.43%
EPS beat(4)3
Avg EPS beat(4)6.29%
Min EPS beat(4)-1.6%
Max EPS beat(4)10.43%
EPS beat(8)5
Avg EPS beat(8)2.34%
EPS beat(12)6
Avg EPS beat(12)0.85%
EPS beat(16)8
Avg EPS beat(16)1.96%
Revenue beat(2)1
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-2.05%
Max Revenue beat(2)1.29%
Revenue beat(4)2
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-2.33%
Max Revenue beat(4)1.29%
Revenue beat(8)2
Avg Revenue beat(8)-1.8%
Revenue beat(12)3
Avg Revenue beat(12)-1.77%
Revenue beat(16)5
Avg Revenue beat(16)-1.11%
PT rev (1m)0.37%
PT rev (3m)-1.38%
EPS NQ rev (1m)2.33%
EPS NQ rev (3m)2.17%
EPS NY rev (1m)0.06%
EPS NY rev (3m)6.65%
Revenue NQ rev (1m)1.47%
Revenue NQ rev (3m)3.39%
Revenue NY rev (1m)1.04%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.35 | ||
| Fwd PE | 7.65 | ||
| P/S | 0.2 | ||
| P/FCF | N/A | ||
| P/OCF | 25.57 | ||
| P/B | 1.11 | ||
| P/tB | 4.84 | ||
| EV/EBITDA | 8.32 |
EPS(TTM)35.19
EY11.97%
EPS(NY)38.43
Fwd EY13.07%
FCF(TTM)-1.65
FCFYN/A
OCF(TTM)11.5
OCFY3.91%
SpS1466.87
BVpS263.99
TBVpS60.72
PEG (NY)0.44
PEG (5Y)0.4
Graham Number457.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 13.28% | ||
| ROCE | 9.34% | ||
| ROIC | 5.53% | ||
| ROICexc | 5.58% | ||
| ROICexgc | 7.25% | ||
| OM | 4.47% | ||
| PM (TTM) | 2.39% | ||
| GM | 15.4% | ||
| FCFM | N/A |
ROA(3y)5.63%
ROA(5y)6.47%
ROE(3y)17.4%
ROE(5y)18.55%
ROIC(3y)7.58%
ROIC(5y)8.54%
ROICexc(3y)7.8%
ROICexc(5y)8.76%
ROICexgc(3y)10.26%
ROICexgc(5y)11.04%
ROCE(3y)12.38%
ROCE(5y)13.83%
ROICexgc growth 3Y-22.88%
ROICexgc growth 5Y-1.28%
ROICexc growth 3Y-24.14%
ROICexc growth 5Y-3.26%
OM growth 3Y-15.89%
OM growth 5Y2.61%
PM growth 3Y-21.85%
PM growth 5Y0.64%
GM growth 3Y-6.17%
GM growth 5Y-0.01%
F-Score6
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.03 | ||
| Cap/Depr | 107.01% | ||
| Cap/Sales | 0.9% | ||
| Interest Coverage | 2.34 | ||
| Cash Conversion | 14.78% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | 2.45 |
F-Score6
WACC8.78%
ROIC/WACC0.63
Cap/Depr(3y)135.76%
Cap/Depr(5y)158.69%
Cap/Sales(3y)0.93%
Cap/Sales(5y)1.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.64%
EPS 3Y-8.87%
EPS 5Y20.64%
EPS Q2Q%15.71%
EPS Next Y18.97%
EPS Next 2Y13.22%
EPS Next 3Y12.78%
EPS Next 5Y15.21%
Revenue 1Y (TTM)8.42%
Revenue growth 3Y16.59%
Revenue growth 5Y23.35%
Sales Q2Q%4.93%
Revenue Next Year4.72%
Revenue Next 2Y4.51%
Revenue Next 3Y5.07%
Revenue Next 5Y5.36%
EBIT growth 1Y7.78%
EBIT growth 3Y-1.94%
EBIT growth 5Y26.57%
EBIT Next Year17.12%
EBIT Next 3Y11.35%
EBIT Next 5Y10.99%
FCF growth 1Y91.95%
FCF growth 3Y-63.67%
FCF growth 5Y-28.69%
OCF growth 1Y209.27%
OCF growth 3Y-38.16%
OCF growth 5Y-4.12%
LITHIA MOTORS INC / LAD FAQ
What is the fundamental rating for LAD stock?
ChartMill assigns a fundamental rating of 5 / 10 to LAD.
What is the valuation status of LITHIA MOTORS INC (LAD) stock?
ChartMill assigns a valuation rating of 6 / 10 to LITHIA MOTORS INC (LAD). This can be considered as Fairly Valued.
How profitable is LITHIA MOTORS INC (LAD) stock?
LITHIA MOTORS INC (LAD) has a profitability rating of 5 / 10.
How financially healthy is LITHIA MOTORS INC?
The financial health rating of LITHIA MOTORS INC (LAD) is 2 / 10.
Can you provide the dividend sustainability for LAD stock?
The dividend rating of LITHIA MOTORS INC (LAD) is 6 / 10 and the dividend payout ratio is 6.25%.